Apple just dropped a new iPhone, and it’s a game-changer—sort of. Meet the iPhone 16e, the tech giant’s latest attempt to bring its flagship device to a broader audience.
Announced in February, this model starts at $599, making it the most budget-friendly option in the iPhone 16 lineup. Preorders opened on February 21, with the official release set for February 28.
While Apple is marketing the 16e as a more affordable alternative, analysts were betting on an even lower price point.
Experts from UBS and Evercore ISI had predicted a $500 starting price. Still, Apple’s VP of Worldwide iPhone Product Marketing, Kaiann Drance, reassures fans:
“We’re so excited for iPhone 16e to complete the lineup as a powerful, more affordable option to bring the iPhone experience to even more people.”
Unlike Apple’s older iPhone SE models—last updated in 2022—the 16e isn’t a stripped-down version of its pricier siblings. Instead, it’s a budget-friendly entry into Apple’s next-gen AI-powered ecosystem.
A Budget iPhone with AI Smarts
The 16e might not have all the bells and whistles of the high-end models, but it does pack some serious tech.
Powered by the A18 chip, the device will support Apple Intelligence, the company’s much-hyped AI software.
Apple has already seen stronger sales in regions where Apple Intelligence is available, so this move could help boost revenue.
Another notable feature? The 16e debuts Apple’s very first in-house cellular modem, the Apple C1. This signals a potential shift away from Qualcomm, the long-time supplier of iPhone modems—a development investors have been keeping a close eye on.
Will the Price Tag Help or Hurt Apple?
Apple’s iPhone sales have been under pressure, especially in competitive markets like China, where Huawei is gaining ground.
The company reported $69.1 billion in iPhone revenue for Q1—down 1% from last year and missing analyst estimates of $70.7 billion.
The 16e could be a double-edged sword for Apple. On one hand, it might attract budget-conscious buyers who were previously priced out.
On the other, it could encourage existing customers to downgrade from the pricier iPhone 15 or 16 models, cutting into Apple’s profits.
Still, an upgrade is an upgrade, and the 16e’s price is higher than Wall Street expected—so Apple could end up making more per unit than initially predicted.
What Else is New?
Aside from its AI capabilities and new modem, the iPhone 16e boasts a longer battery life, lasting up to six hours more than the iPhone 11 and a whopping 12 hours longer than all SE models.
Apple has also made some hardware changes: say goodbye to the home button and hello to a USB-C charging port, continuing the trend seen in recent iPhone models.
In summary, the iPhone 16e isn’t just another budget phone—it’s Apple’s way of keeping up with shifting market demands. Whether it becomes a best-seller or a flop depends on how customers react to its higher-than-expected price.
